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1. Par The official value of a currency. 2. Par Spread The term used to describe the situation where the bid and ask prices for a forward spread rate are identical. 3. Paris Nickname for the US Dollar-French Franc currency pair before the French Franc was converted [...]
1. OCO See also: One Cancels the Other Order 2. Odd Lot A non-standard transaction size. In forex, a standard lot is usually 100,000 units of a particular currency. 3. Off-Shore A business entity that may or may not be physically located in a country, but whose [...]
1. Naked Put A put sold by someone who is not short the underlying asset. 2. Narrow Market Also known as a thin market, where there is light trading. 3. NAV Net Asset Value. The total value of an asset [...]
1. M1 Money supply component which consists of all cash in circulation, plus all of the money held in checking accounts, as well as all the money in travelers checks. 2. M2 Money supply component which consists of M1 plus all of the money [...]
Hard Currency - A currency that investors have confidence in. Examples could be the US Dollar or the Euro. Head and Shoulders - A price trend pattern which has three peaks, the middle one higher than the surrounding two forming what looks to be a head with two shoulders on either side. Hedge - [...]
G7 – The seven leading industrial countries, being US , Germany, Japan, France, UK, Canada, Italy. Going Long – The purchase of a stock, commodity, or currency for investment or speculation. Going Short – The selling of a currency or instrument not owned by the seller. Gold Certificate – A certificate of ownership that gold [...]
Factory Orders – The dollar level of new orders for both durable and nondurable goods. This report is more in depth than the durable goods report which is released earlier in the month. Federal Reserve (Fed) – The Central Bank for the United States. First In First Out (FIFO) – Open positions are closed according [...]
Economic Indicator – A government issued statistic that indicates current economic growth and stability. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc. End Of Day Order (EOD) – An order to buy or sell at a specified price. This order remains open until the end of the trading day which [...]
Day Trader – Speculators who take positions in commodities which are then liquidated prior to the close of the same trading day. Dealer – An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the [...]
Cable – Trader jargon referring to the Sterling/US Dollar exchange rate. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800′s. Canadian Ivey Purchasing Managers (CIPM) Index – A monthly gauge of Canadian business sentiment issued by the Richard Ivey Business School. Candlestick Chart – A chart that [...]